State-owned NMDC today reported a decline of 21.74% decline in net profit to Rs 1,642.28 crore for the quarter ended March 31, 2012, largely due to lower realisations on sale of iron ore.
The largest domestic iron ore miner had reported a net profit of Rs 2,098.62 crore in the same quarter of 2010-11.
Net sales of the company were down 45.35% to Rs 2,593.65 crore during the quarter vis-a-vis Rs 3,769.75 crore in Q4 of FY'11, it said in a filing to the BSE.
Besides, the company also incurred a loss of Rs 51.30 crore during the quarter on impairment of windmills in Karnataka, which are pending recommissioning, it said.
For 2011-12 fiscal, the company reported a growth of 11.79% in net profit at Rs 7,265.39 crore, compared to a net profit of Rs 6,499.22 crore in FY'11, largely due to higher production of iron ore.
Net sales of the company was marginally lower by about 1% to Rs 11,261.89 crore in FY'12 against Rs 11,369.31 crore in 2010-11.
In last fiscal, the Hyderabad-based mining firm produced 27.26 million tonnes of iron ore, a growth of 7% over the previous year's 25.16 million tonnes.
For the ongoing financial year, the company is targeting to produce about 30 million tonne iron ore and has kept a capex of Rs 4,655 crore.
Of this, it intends to spend Rs 3,513 crore on its upcoming 3 million tonne per year steel plant in Chhattisgarh's Nagarnar, while rest of the money will be used on existing mines in Chhatthisgarh and Karnataka.
The company also said its Board has recommended a dividend of 450% or Rs 4.50 per share on Rs 1 a share each. This includes interim dividend, announced earlier, of Rs 2 per share on Rs 1 for the last fiscal.
It added that the company plans to sell the plant and machinery of Silica sand project, Lalapur and UPFO plant at Vizag and has initiated the process.
Shares of the company closed today at Rs 167.80 apiece on the BSE, down 1.76% from the previous close.
